From High Risk to High Potential: Rethinking Agribusiness Finance

Day One of the Sokoni Agri Business Expo, held on 28th August 2025 opened ,with a challenge from keynote speaker Nicholas Kinuthia, Branch Manager, Retail Banking Division , at KCB Gigiri:

Kenya’s cottage businesses and farmer groups urgently need patient capital if they are to grow and compete fairly. He reminded us that agriculture contributes nearly 30% of Kenya’s GDP and is the backbone of both food security and foreign exchange, yet farmers still lack consistent markets and financing tailored to their needs.

One panelist summed up the struggle well:

“Today a broker will tell me it’s five shillings, tomorrow it’s two… because as a farmer I don’t have access to the market, I end up selling at whatever price.”

This reality highlights a deeper issue: farmers and SMEs are still viewed as “high risk.”

At Pezesha, we believe the opposite is true. Farmers and agri-SMEs are in fact high potential and the key to unlocking that lies in data. By using alternative data scored through our engine Patascore, we are able to lend to businesses who would otherwise not be considered credible borrowers. This transforms underserved SMEs from excluded to investable. And for agro-processors, this means a stronger, more reliable value chain, because their suppliers and partners can finally access fair finance

Digital Credit, Data, and Dignity

A key takeaway from the event was the industry’s shift from traditional collateral-based lending to credit scoring models where platforms like Patascore (our sister company powering credit scoring as Service) is playing a vital role as the engine behind MSME lending to M-Pesa merchants we are supporting with working capital solutions. Pezesha has been at the forefront of this transformation, investing significantly in data-driven underwriting. This approach allows micro and small businesses to access credit based on their transaction history and business performance, rather than physical assets.

But finance is not just about lending. It’s about building responsible, sustainable businesses. That is why, through our financial education platform Elimiza, we are equipping entrepreneurs with the knowledge to borrow wisely, manage capital effectively, and grow with resilience.

As Alice  of the Consumer Grassroots Association reminded us:

“The language we understand as consumers is safety, affordability, and accessibility.”

Finance must therefore go beyond disbursements. It must build trust, transparency, and education across the value chain. With the right data, fair scoring, and financial literacy, Kenya’s farmers and SMEs can step into their true role not as “high risk,” but as the high-potential drivers of food security and inclusive growth.